• Latest
  • Trending
  • All
Thoughts on sustainability from the big consulting firms at ValueX

Thoughts on sustainability from the big consulting firms at ValueX

November 14, 2019

Global Strategic Sourcing Software Market 2017-2026| SAP Ariba, Coupa, Scout RFP, Zycus, Procurify – Galus Australis

April 16, 2020
Weakest link in supply chain threatens car industry revival

Weakest link in supply chain threatens car industry revival

April 16, 2020
New case reported at Lexington LEX2 warehouse

New case reported at Lexington LEX2 warehouse

April 15, 2020
These inventory trackers will notify you when hard-to-find items are back in stock

These inventory trackers will notify you when hard-to-find items are back in stock

April 15, 2020

Last Mile Delivery Market Analysis, Revenue, Share, Growth Rate & Forecast To 2025

April 15, 2020
Antonov An-225 Mriya: world’s largest cargo plane, history, details

Antonov An-225 Mriya: world’s largest cargo plane, history, details

April 15, 2020
Coronavirus | Punjab all set for wheat procurement within lockdown norms

Coronavirus | Punjab all set for wheat procurement within lockdown norms

April 14, 2020
Copperstate Farms Launches International Cannabis Brand DNA Genetics in Arizona Market

Copperstate Farms Launches International Cannabis Brand DNA Genetics in Arizona Market

April 14, 2020
Mzee Moi’s Ksh10B Gift to Gideon

Mzee Moi’s Ksh10B Gift to Gideon

April 14, 2020
Covid Knights: Corporate social purpose in the time of COVID-19

Covid Knights: Corporate social purpose in the time of COVID-19

April 14, 2020
How Tesla And BMW Are Leading A Supply Chain Renaissance With Blockchain

How Tesla And BMW Are Leading A Supply Chain Renaissance With Blockchain

April 14, 2020
Last Mile Delivery Market Worth Observing Growth | UPS, FedEx, SF Express

Last Mile Delivery Market Worth Observing Growth | UPS, FedEx, SF Express

April 14, 2020
  • Supply Chain
  • Logistics
  • Warehousing
  • Procurement
  • Shipping
  • More
    • Strategic Sourcing
    • Spend Analysis
    • Inventory
    • Contact Us
No Result
View All Result
United States International Supply Chain Commission
United States International Supply Chain Commission
Home Strategic Sourcing

Thoughts on sustainability from the big consulting firms at ValueX

by usiscc
November 14, 2019
in Strategic Sourcing
0
Thoughts on sustainability from the big consulting firms at ValueX
492
SHARES
1.4k
VIEWS
Share on FacebookShare on Twitter

The morning session at SAP Ariba/SAP Fieldglass ValueX left us with some thoughts from the big consulting firms about the way procurement, and indeed business, should and will go in the coming years if we are to survive the pace of technological change the world is experiencing, and adapt our processes to respect our planet. We believe the presentations will be available to read in full, so to give a snapshot:

The keynote called for a reboot of capitalism and (the environment), championed by John Penrose MP.

Deloitte was quick to follow with a look at Industry 4 (automation, data exchange, cyber-physical systems (CPS), the internet of things (IoT), industrial internet of things (IIOT), cloud computing, cognitive computing and artificial intelligence and so on) in the context of procurement. They reminded us that the fourth industrial revolution is not, however, just about a collection of technologies, rather how you package and use them altogether to support your long-term business strategy. A global Deloitte survey revealed that 94% (of respondents) saw implementing digital tech and processes (aka digital transformation) as a means just to ‘keep up’ with the rest of the marketplace. Their ability to use the data that comes out of it in real time to aid real growth is lacking, and that is the paradox. So the call to action was: Do not see digitisation as a defence mechanism!

PWC talked about the disruption that is coming from the megatrends of climate change and resource scarcity, social change, accelerating urbanisation, shifts in economic power and tech breakthroughs, and that what really matters is how they will collide, not how they will affect us on their own. And it’s how we adapt that will define how we survive: for example, water shortage in Mexico has affected Heineken production, so the industry responds with looking at ways to recycle water, decreasing their dependence on it by 30%. Rapid urbanisation growth is expected to see billions of people in megacities in the next 20 years or so, bringing huge opportunities for economic development. Cyber risk is becoming more and more of a threat: the US navy responds by going back to teaching navigation, not by tech, but by the stars.

So for procurement these ‘megatrends’ will mean that risk management will have to be hard-wired into everything we do. Two-thirds of the CEOs PWC spoke to said they were changing their sourcing strategies in response to concerns about global trends, especially climate change. One example of seizing opportunities from these trends is seen in SE England, where good quality champagne can now be produced because it has a similar climate to the growing region of France of the 1980s. (We’re not suggesting that compensates for the other effects of climate change – the point is we must adapt and seize the opportunities out of upheaval.)

A snapshot of procurement and its readiness told us that 16% of CPOs don’t have a clear vision or road map to transform their function; 45% of firms are adjusting their supply chain and sourcing strategies, 43% of CPOs are unable to drive meaningful insight form their procurement data due to poor quality and lack of trust; 41% or organisations say making workforce decisions using analytics is important – but they don’t do it. And new skills are needed, 71% of CPOs will increase the amount of contractors they use in two years. They reminded us there will be an increasing need to use data and AI to find the future value opportunities.

Accenture followed calling for procurement to have a change of mindset – from the ‘suppliers versus us’ scenario and a compliance- and process-driven approach – to take advantage of the huge opportunities for collaboration. In a new procurement structure we would have 360 degree relationships with suppliers, customers and buyers, because we are all part of a big ecosystem. Transformation in whatever form it takes cannot be run like a project as part of the day job. If we are serious about it, we need to dedicate a workforce to it, as we need to repurpose for the future and with that comes co-innovation and enablement. Alongside that we need to support the supply base, with diversity comes innovation, and they see lot of benefit coming from SMEs in terms of sustainability.

The morning culminated in a very engaging panel session on spend transformation to enable a circular economy from Tifenn Dano-Kwan, CMO, SAP Ariba & SAP Fieldglass, Stephen Jamieson, Head of Sustainability EMEA, SAP, Sian Sutherland, CEO, A Plastic Planet, Kevin Vyse, Circular Economy Expert, Government Advisor and Dr Peter Maddox, Head of Government Programmes, WRAP. They focused on our depleating resources, and how we need to source responsibly. The circular economy is addressing that with reuse of materials, and seeing the value in what we call waste. But business and government must come together to design policy. We need to go back to making products that don’t have to leave the economy. Products for longevity. Of course the challenge is how we can make money from that system!

On plastics, they said, while it’s in the news a lot, it’s as recoverable as anything else: ‘so long as you can trace it, you can recapture its value,’ which was another nod to transparency, a theme we heard about in the IBM session earlier. But Plastic Planet reminded us that despite efforts like cutting down on plastic bag usage in the UK for example, the amount of plastic waste is not decreasing. 4.1 billion plastic bags are still being used.

If recycling is the answer, where is all the plastic going to go? We know the toxicity of burning it. So we shouldn’t treat it like rubbish: we still export more than 60% of our plastic waste mainly to third -world countries. But, the public are disempowered. It’s not a shopper problem it’s a production problem – people will buy what they are sold. Big businesses must ignite the fire for change.

And there are many big businesses trying to do that. Although one of the largest polluters, Unilever has ambitious targets, and is looking at how to remove the unnecessary purchases. For example, rather than buying a can of deodorant, is there a means to buy just the bit we use, the deodorant, so we wouldn’t need to throw away the whole can. So we must think about what exactly it is we want to buy, and work with suppliers that can deliver it, because they are out there.

This theme of circular production, circular use, circular life, ran through the whole event. SAP has long been looking at how we stimulate the move from linear supply chains to circular ones. But, they are not unrealistic: first, we have to get own house in order, they said. Each year the firm publishes a financial report with sustainable metrics at molecular level. And it is employing its rich Ariba Network to help tackle the sustainability problem: challenging the economies of secondary materials by connecting those industries with people who can innovate with them; working with customers to give them insight on their impact on the environment and unlocking their marketplace to help channel recycled plastic to a new recycle market.

The call was to be prepared, because legislation cometh.

Share197Tweet123Share49
usiscc

usiscc

  • Trending
  • Comments
  • Latest

Global Strategic Sourcing Software Market 2017-2026| SAP Ariba, Coupa, Scout RFP, Zycus, Procurify – Galus Australis

April 16, 2020
Antonov An-225 Mriya: world’s largest cargo plane, history, details

Antonov An-225 Mriya: world’s largest cargo plane, history, details

April 15, 2020
3 keys to mitigating severe supply shortages from coronavirus disruption

3 keys to mitigating severe supply shortages from coronavirus disruption

March 18, 2020

Global Strategic Sourcing Software Market 2017-2026| SAP Ariba, Coupa, Scout RFP, Zycus, Procurify – Galus Australis

0
Global Industry Analysis, Size, Share, Growth, Trends, and Forecasts 2016–2024 – ZMR News Reports

Global Industry Analysis, Size, Share, Growth, Trends, and Forecasts 2016–2024 – ZMR News Reports

0
PHOTOS: Ottawa firefighters respond to warehouse fire

PHOTOS: Ottawa firefighters respond to warehouse fire

0

Global Strategic Sourcing Software Market 2017-2026| SAP Ariba, Coupa, Scout RFP, Zycus, Procurify – Galus Australis

April 16, 2020
Weakest link in supply chain threatens car industry revival

Weakest link in supply chain threatens car industry revival

April 16, 2020
New case reported at Lexington LEX2 warehouse

New case reported at Lexington LEX2 warehouse

April 15, 2020
  • Privacy Policy
  • Terms of Use
  • Disclaimer
  • DMCA
  • Contact Us

Copyright © 2020 usiscc.org.

No Result
View All Result
  • Supply Chain
  • Logistics
  • Warehousing
  • Procurement
  • Shipping
  • More
    • Strategic Sourcing
    • Spend Analysis
    • Inventory
    • Contact Us

Copyright © 2020 usiscc.org.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary Always Enabled

Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.

Non-necessary

Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.